What Makes Figma (FIG) an Investment Choice?

FIG -0.44%

Sands Capital, an investment management company, released its Q3 2025 investor letter for the “Sands Capital Technology Innovators Fund.” A copy of the letter can be downloaded here. Technology Innovators focus on pioneering businesses worldwide that serve as key drivers or beneficiaries of significant, long-term technological changes. The fund returned 8.4% (net) in the third quarter compared to a 12.5% return for the benchmark, MSCI ACWI Info Tech and Communication Services Index. Despite concentrated leadership, global equities appreciated in the third quarter, as measured by the MSCI ACWI. The United States accounted for almost 70 percent of the index's increase, while developed markets outside the U.S. and emerging markets also provided positive returns. You can check the fund’s top 5 holdings to know more about its best picks for 2025.

In its third-quarter 2025 investor letter, Sands Capital Technology Innovators Fund highlighted stocks such as Figma, Inc. (NYSE:FIG). Figma, Inc. (NYSE:FIG) is a leading technology company that develops digital design tools. The one-month return of Figma, Inc. (NYSE:FIG) was -25.33%, and its shares lost 48.82% of their value over the last three months. On November 28, 2025, Figma, Inc. (NYSE:FIG) stock closed at $35.97 per share, with a market capitalization of $17.826 billion.

Sands Capital Technology Innovators Fund stated the following regarding Figma, Inc. (NYSE:FIG) in its third quarter 2025 investor letter:

"Figma, Inc. (NYSE:FIG) is a leading digital design platform whose cloud based software enables designers, developers, and adjacent roles to collaborate on digital products such as applications, software, and marketing content. Over the past decade, strong execution and a culture of innovation allowed Figma to emerge as the daily-use productivity tool for professional designers, with more than 80 percent share of the UI/UX market. Its dominant position has given it the ability to expand its feature set and upsell adjacent products, while also extending its reach to more than 13 million monthly users, many outside the core design vertical. While generative AI has the potential to reshape design workflows, we believe thoughtful design and user experience—areas where Figma excels—will become increasingly important differentiators. Its leadership position leaves it well placed as the market evolves."

Figma, Inc. (NYSE:FIG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Figma, Inc. (NYSE:FIG) at the end of the third quarter, which was 0 in the previous quarter. Figma, Inc. (NYSE:FIG) delivered revenue of $274 million in Q3 2025, marking a 38% increase from Q3 2024. While we acknowledge the potential of Figma, Inc. (NYSE:FIG) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Figma, Inc. (NYSE:FIG) and shared the list of under-the-radar stocks with massive upside heading into 2026. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.